The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XVI. The administration of the stock exchange

Collection:: Economics Books

ADMINISTRATION OF THE STOCK EXCHANGE 459 wholesale commodity prices, either upwards or downwards— and both price movements proceeding from such a cause are equally bad. Closing Contracts “Under the Rule.”—A further set of regulations®® relates to the methods employed in closing con- tracts “under the rule.” Such contracts are occasioned when a house either announces its insolvency, or fails to make deliv- eries of stock or payment for stock by the proper time. The member to whom money or securities are due but have not been delivered, is permitted to make a new contract involving the same transaction in the same security, and substitute it for the old contract which has not been fulfilled. Any profit or loss occasioned to the member who is forced to make such a second contract is credited or charged to the member who has failed to keep his contract. Owing to this method of closing contracts under the rule, unnecessary delay and risk by the party closing the contracts are eliminated. Suspension of Trading.—It sometimes becomes necessary to halt the trading in securities upon the Exchange, either in a single security or in all securities. In the former case of an issue security, trading in it may be temporarily suspended, or it may be permanently stricken from the list, in the manner and for the reasons outlined more fully in a former chapter.” But upon two wholly exceptional and extraordinary occasions the entire Stock Exchange has failed to open its doors and all its operations have ceased.”® This has happened only twice since 1792—in the panic of 1873 and at the outbreak of the Great War in 1914. So drastic a step has been resorted to only in an economic convulsion, when the maintenance of a security market beneficial to the public has been rendered an impossibility. Needless to say, to close the Stock Exchange requires the affirmative vote of the Governing Committee. 2 See Appendix XVi1. # See Chapter IV, p. 16 B See Chapter III, p. 72

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